Over the next two years, Swiss FMCG giant, Nestle, to sack over 16,000 employees worldwide as part of a broader effort to focus on high-return products and improve operational efficiency. The company's newly appointed CEO, Philipp Navratil, said that Nestle need to adopt a performance mindset to maintain its market leadership for the company to "change faster."
Who Will Be Affected?
Out of 16,000 layoffs, 12,000 white collar employees will be impacted, while the remaining 4,000 jobs will be cut from manufacturing, supply chain and other sectors. The FMCG giant forecasts to save around CHF 1 billion annually by 2027 through these layoffs.
CEO Navratil said that the world is changing and the company needs a change. "We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded," he added, reported Zee Business.
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This cut off comes despite strong sales growth in the first nine months of this year, with the company performing well across major categories such as coffee, sweets and packaged foods.
Layoffs are a part of Nestlé's ongoing Fuel and Growth campaign, which aims to increase cost savings, streamline operations, and automate processes.